CCEA may consider an additional 5 MT foodgrains allocation to BPL tomorrow

Additional foodgrains will be supplied at BPL rates and will cost the govt Rs 9,471 cr

The CCEA is likely to consider tomorrow a proposal to allocate an additional 5 million tonnes of foodgrains to families below the poverty line (BPL), entailing a subsidy of about Rs 9,471 crore.

"The Cabinet Committee on Economic Affairs (CCEA) meeting is scheduled for tomorrow. The Food Ministry's proposal on allocation of an additional 5 million tonnes of foodgrains to BPL category for the 2013-14 fiscal is on the agenda,highly placed sources said.

The proposal was listed on the agenda of the CCEA meeting in the last two months. However, the issue could not be take up for discussion.

According to the Cabinet note, the additional foodgrains would be supplied at BPL rates and would cost the government Rs 9,471.22 crore, they said.

The Ministry said in the note that the extra foodgrain allocation would be adjusted in states where the new Food Security programme will be implemented. Delhi, Uttarkhand and Haryana have announced implementation of the new food law, which aims to provide legal right over subsidised foodgrains.

The Food Ministry has proposed the extra allocation for 6.52 crore BPL families because the government has excess stocks of foodgrains.

As of September 1, foodgrains stocks in the government godowns is around 59 million tonnes, which include 38.3 milion tonnes of wheat and 20.5 million tonnes of rice.

For APL families, the government had in May allocated 6 million tonnes of extra foodgrains for this fiscal. In June, it had approved the sale of 10.5 million tonnes of foodgrains in the open market to check rising prices.

The government supplies rice and wheat at subsidised rates of Rs 5.65 per kg and Rs 4.15 per kg, respectively, to BPL families.